Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Peru (Ratification: 1962)

Articles 1 and 3(2) of the Convention. Minimum wage fixing machinery and consultation with social partners. Further to its previous comments, the Committee notes the Government’s information that since 2007, the national minimum wage is regularly revised based on two main technical indicators – projected inflation and multifactor productivity – established by the tripartite National Council for Labour and Employment Promotion (CNTPE). The Committee understands that the draft General Labour Law, which is currently under preparation, sets out in section 203 the role and function of the CNTPE in the minimum wage fixing process without however specifying the criteria to be taken into consideration in determining minimum wage levels. The Committee requests the Government to keep the Office informed of any further developments concerning the elaboration of the minimum wage provisions of the draft General Labour Law and recalls, in this connection, that the Minimum Wage Fixing Convention, 1970 (No. 131) – that the Government is strongly encouraged to ratify – contains specific guidance on the socio-economic factors to be used in fixing and adjusting minimum wages.

In addition, the Committee notes the comments of the General Confederation of Workers of Peru (CGTP) received on 8 October 2012 and transmitted to the Government on 12 October 2012 according to which the national minimum wage is the second lowest among Latin American countries. The CGTP refers to a tendency of progressive erosion of the purchasing power of the minimum wage which currently covers only 72 per cent of the basic family basket, calculated on the basis of four family members and a monthly cost of 260 Peruvian nuevos soles (PEN) (approximately US$100) per person. The CGTP points out the importance of implementing policies that seek to improve the purchasing power of workers’ earnings but also promote collective bargaining for fixing wage levels. The CGTP also considers that there can be no progress towards social justice unless a better synergy is established between the institutions responsible for developing macro-economic policies and those responsible for social policies, in the framework of a constructive dialogue with workers’ and employers’ organizations. Such dialogue should render it possible to create a more equitable relationship between labour productivity and wages. The Committee requests the Government to provide any comments it may wish to make in response to the observations of the CGTP.

Article 5 and Part V of the report form. Application in practice. The Committee notes that the national minimum wage was last increased by Supreme Decree No. 007-2012-TR and is presently set at PEN750 (approximately $290) per month. It also notes the Government’s information that in Peru there are on average two wage earners per family, permitting them to cover the monthly basic basket of essential consumer goods estimated at PEN1,382 (approximately $530). The Government indicates that, according to the National Household Survey (ENAHO), between 2004 and 2010, the percentage of the workforce that received wages equal or higher than the minimum wage increased from 61 to 70 per cent. Finally, the Committee notes the statistical information on inspection results and the Government’s indication on the supervision of compliance with the minimum wage legislation through the system of electronic payroll developed by the National Superintendence of Tax Administration. The Committee requests the Government to continue to provide up-to-date information on the practical application of the Convention.